Credit Repair services » Consumers

Bad Credit Credit Cards – Pros And Cons

admin — Wed, 14 Apr 2010 18:58:44 +0000

In modern society, many people have adopted a buy now and pay later mentality about purchasing. This has caused problems for many people when they fall on hard times and are unable to pay their bills. This problem has come to the attention of some lenders who have developed a range of bad credit credit cards to accommodate people who fall into this financial category.

Bad credit credit cards have benefits for both the lenders and the consumers. Lenders have noticed the potential to charge higher interest rates, raise fees and increase profits making this business very lucrative for them. These cards help many customers to increase credit score and have returned purchasing power back to those who otherwise would have no other options.

There are many types of credit cards for consumers to choose from like prepaid, secured, and unsecured. Prepaid cards are generally just a debit card where the consumer is able to deposit his or her own funds. These cards have no effect on credit score and are not reported to credit agencies. As convenient as prepaid cards are to have, they are not helpful in rebuilding your credit.

When trying to rebuild your credit, think about secured credit cards. These cards are secured by funds that you deposit in to a savings account. This protects you the consumer from getting in over your head, and also protects the credit card company to know that they will receive the funds if you are unable to pay your debt back. These companies will typically report to a credit agency.

Having trouble establishing credit? Bad credit credit cards can be your answer. They are frequently unsecured, but have a higher interest rate and fees for late charges. Keeping your payments paid will not only increase your credit rating but will also raise your credit line which more often than not starts at around $500.

Customers should decide carefully when choosing a credit card. Be sure to find a card that suits your current needs and that also has terms and conditions that are favorable to the customer. Check your online credit score regularly to ensure that your score is being correctly reported.

By: Daniel Lesser

How Long Do Late Payments Stay on My Credit Report?

admin — Wed, 14 Apr 2010 10:38:10 +0000

Late payments do affect your credit rating but what most consumers don’t know is that it also depends on how late your payment is made to the creditor. To start with, late payments that are made to creditors but are no later than 30 days late are not reported to the credit bureaus. So for instance, you have a credit card payment that is due on the 1st of January and you are not able to make the payment until the 27th of January.

This is considered late with the credit card company but will not show up on your credit report as a late payment. It will not show on your credit report until you are more than 30days late and it will show as a “1-time 30day late payment”.

These types of late payments usually affect your score and can have a lasting effect for about 12 months. The same goes with other types of accounts such as car payments, mortgage payments, personal loans as well as secured loans.

Even if the payment is a couple of days late, the best thing is to try and make sure it does not go beyond the 30-day point. It is also important to note that these late payments can cause your interest rate to rise on your credit cards.

This may be the case even if you are only 1 day late as opposed to 20 days late. This will vary depending on the credit card company you are dealing with. You want to check with the your creditor to find out their exact policy.

By: Tony Banks

Credit Restoration Tips

admin — Sat, 10 Apr 2010 00:30:11 +0000

It seems like more and more credit restoration services are popping up by the minute. You can spot the advertisements for them online, on television and on the radio almost everyday. While I believe the awareness of credit repair and the help available to consumers is a good thing, it can also be very confusing on who to turn to.

When choosing a credit restoration service, one should always research the company’s reputation. Many of the new services that are popping up mean well, but they are not as advanced as some of the credit restoration services that have been around for awhile. I would recommend sticking with a service that has been around for at least a couple years. The more you can find out about them, the better.

Do-it-yourself credit repair is another wise way to mend your credit history and can be a little less expensive. I say “can be” because if you are able to get the same results as a credit restoration service, you are obviously going to save yourself some money. However, if you are not able to get the same or better results as a credit repair service, it may end up costing you hundreds and even thousands of dollars in the long run. I’m not saying that to scare you, but you should take caution when trying to attempt repairing your credit on your own.

Most websites are eager to tell you that credit restoration should be done individually by the consumer. I agree that it should be as well, but encouraging consumers to just jump right in to it without warning them of the horrible consequences that could happen is just very bad advice. The way I look at it is this: Either way you are going to spend time and/or money if you have bad credit, either by paying higher interest rates, spending the time to learn credit repair, or paying for a credit repair service to fix it for you. It’s your choice, but let it be known that sometimes when you try to skimp on things this important it can end up biting you in the end.

By: Chane Steiner

How Can a Credit Card Help Repair Bad Credit?

admin — Sun, 28 Mar 2010 09:19:14 +0000

In general, credit cards can do one of two things. They can either help your credit, or hurt it. The way in which you use your card will determine whether or not your card helps you.

Consumers who use their credit cards responsibly find that their credit score is higher. Why? Credit cards can boost your financial position when used correctly. However, when credit-cards are used incorrectly, scores take a nose dive.

If you have made some mistakes in the past and are trying to correct those mistakes, you need to become aware of a few credit card hints. Follow these hints to take your score from bad to good and from good to great. After all, a credit-card really can repair bad credit.

1. Spending. The majority of consumers somehow let their spending get out of control. Whether this includes buying things that you don’t really need or spending more money than you make, these habits can become detrimental to your credit-score. Keep a close eye on your all of your spending, but most importantly your card spending. Make sure that you are making smart decisions when it comes to spending your hard-earned money.

2. Due Dates. One thing that you must never mistake if you want your new card to help repair your bad credit is the due date. The more you make your credit cards payment on time, the more your score will increase. One little secret to ensure that you never miss a due date is to set your own due date several days before the creditor’s due date. Don’t let a missed due date bring your score down.

3. Payments. Why should you simply make partial payments? Consumers who have good credit scores realize that the secret to improving your credit score with credit cards is to pay the entire balance off each and every month. Again, this goes back to spending. If you control and limit your spending, you will have no problem paying off the entire balance in full every month.

4. Moderation. Having too many different cards can damage your credit score or prevent it from being repaired. The key is to have “a few” cards that help you reach your objectives. The goal is not to have every slot in your wallet taken up with a card. Only keep one or two credit cards. This will not only repair your bad credit, but it will be much easier to manage a few credit cards, rather than an entire pocket full of them.

Credit-cards can absolutely repair bad credit. The secret is knowing how to use a credit-card wisely. Control your spending. Never miss a due date. Pay off the entire balance in full every month. Keep the number of open cards to a minimum. Follow these helpful hints to ensure that your cards help repair your bad credit.

By: Amanda Sargent

Credit Repair For A Bad Credit Score

admin — Thu, 04 Mar 2010 04:55:59 +0000

Those consumers that are searching for credit repair for a bad credit score are often left wondering what their options for help are. There are several routes that one can take when looking to change a bad credit score, all with their good and bad points.

There are many agencies out there that are more then happy to offer assistance to consumers looking for credit repair for a bad credit score. Most financial experts and consumers alike have mixed feelings about the helpfulness of these credit repair agencies. On the plus side these companies can assist you in not having to deal with collection agents that can get downright verbally abusive which can really take the load off someone’s shoulders. However many that are looking to repair their bad credit score have had credit repair companies not send their payments in on time which lead to their credit score situation becoming worse. Companies that offer theses types of services can be rather expensive.

You could also contact a lawyer that deals with credit and other financial issues to assist in fixing your bad credit score. In this instance many people feel very confident as the are dealing with an attorney, the only real downside here is that attorneys that will help in the repair of a bad credit score are likely to be more expensive then what most can afford.

An option that is becoming more and more popular with consumers on a mission to repair their credit score is fixing their credit themselves. Many people worry that this method isn’t the best route to take, as most consumers don’t believe they are as well informed as professionals in the credit repair arena. This is really not true at all as with a little research into self-credit repair you can be successful in raising your credit score after all you are definitely your best advocate. Best of all this method of credit repair for a bad credit score will cost you little to nothing.

By: Blake C. Hendrickson